MercadoLibre Inc., the Latin American e-commerce and fintech platform thatâs now the regionâs most valuable company, said itâs seeing signs of a consumption rebound in Argentina after a difficult start to the year.
A record 20 million products were sold on its platform in August, worth the equivalent of $916 million, the company announced Tuesday in a press release. Consumers were turning to non-essential goods like computers, tablets and cellphones after food and basic necessities led the way at the start of the year, MercadoLibre said.
The company is also ramping up its lending to consumers, sellers and small business owners with its credit portfolio growing 69 percent year-on-year in September as measured in dollars. Payments using the companyâs QR code system at physical stores also jumped 68 percent from a year earlier on the back of interest-free instalment financing, discounts and promotions.
Other indicators tracked by the tech giant like properties for sale and rent, as well as searches for vehicle purchases, show that consumers are recovering from a brutal economic reset being carried out by President Javier Mileiâs government to try to quash inflation and end recurring budget deficits.
âThese indicators suggest the beginning of a quantitative and qualitative recovery in Argentine consumption patterns,â the company said.
Argentinaâs economy is mired in its sixth recession in a decade, with the poverty rate jumping to nearly 53 percent in the first half of this year. Monthly inflation, however, has fallen to about 4 percent from a peak of nearly 26 percent when Milei took power in December. And there are other incipient signs of recovery, including growth in wages, consumer spending and manufacturing.
MercadoLibre, which gets the bulk of its business from Brazil, saw its market capitalisation cross $100 billion this year for the first time.
By Daniel Cancel
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